The Activity of the Bitcoin Whales Indicates the Predominance of Transfers to Exchanges

Alexander Salazar
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The Activity of the Bitcoin Whales Indicates the Predominance of Transfers to Exchanges

Many whales moved funds from their wallets to exchanges, helping predict that the predominant trend was selling. The number of tokens entering those platforms decreased, leading to a rise in the price of the pioneering cryptocurrency.

The most recent report on the Bitcoin whales revealed high activity between June 20th and June 26th. It registered the most activity during the first days, as they moved high amounts of BTC to exchanges. They may have done that just for the sake of selling or causing tension among investors.

The price fluctuated between USD 20,000 and USD 21,000, but the whales moved significant amounts of BTC. To have a clearer idea, those long-term holders moved 68,156 BTC only from wallets to exchanges. Meanwhile, others took advantage of the low prices to hoard even more coins, which helped stabilize the market and decrease volatility.

Data from Whale Alert and bitinfocharts allowed tracking those holders accurately. According to the latter, one of the most prominent Bitcoin whales benefited from the price drop to accumulate almost 900 BTC.

The Bitcoin Whales Accumulate and Make Transfers to Exchanges

Many Bitcoin whales have moved funds from their wallets to exchanges over the last week. Therefore, it is possible to predict that the predominant trend is the sale of coins.

Since there are 68,156 BTC on exchanges this week, 41.74% of the Bitcoin whales may be planning to sell. That means greater liquidity in the market while 21.16% of those long-term holders take advantage of the drop to accumulate.

The trend in the Bitcoin price has moved sideways as it is at an intermediate point. In other words, there is an outflow of 28,558 BTC from exchanges to wallets, equivalent to 17.49%. By adding it with the 21.16% that take advantage to accumulate, there is 38.65%.

That has essentially allowed for more stability in the market, but about 32,000 BTC units are also moving between exchanges.

The Weekly Performance and Forecast of the Bitcoin Price

The whales reduced the number of tokens entering exchanges over the last few days. That decrease in supply could lead to a rise in the price of BTC, probably making it break the USD 22,000 barrier.

However, transaction tracking only allows foreseeing what the Bitcoin whales might do. Some primary addresses, having over 8,000 BTC, belong to exchanges and investment platforms. Since they have not shown any intention to sell, they are not part of this analysis.

It is relevant to look at the movements of the following week, especially the high amount of BTC entering exchanges. That allows understanding that there have already been several significant sales but not others.

The Bitcoin whales recently accumulated 25,816 tokens, signaling the lengthening of low-volume purchases.

BTC is trading at around USD 20,920 and has accumulated a 2.0% gain over the last seven days. While its daily trading volume is above USD 18.51 billion, its market capitalization is about USD 399.14 billion, according to CoinGecko.

By Alexander Salazar

Bitcoin in Latin America Became a Labyrinth of Regulations

Jenson Nunez
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Bitcoin in Latin America Became a Labyrinth of Regulations

51% of Latin citizens implemented bitcoin and crypto-assets for payments in 2021. Some nations prefer to develop central bank digital assets.

The Latin American region has been one of the territories in which both bitcoin and other digital assets have landed with fierce. Among other reasons, one situation that has influenced this situation the most is the existence of fragile economic structures.

These obstacles became an incentive for people to seek more options that allow them to execute transactions without barriers and even overcome economic punishments imposed by the United States of America, as in the case of Venezuela and Cuba.

In this sense, a recent study led by MasterCard, one of the most prominent financial and banking entities, confirms this situation. The survey highlighted that more than half of Latin Americans used bitcoin and other digital currencies to make payments in 2021.

At least 51% of the 6,004 users and consumers consulted in 10 Latin American markets worked with digital assets and claimed to have used BTC and digital assets for payments.

This higher level of adoption urged the authorities to set more regulations in the sector, as has happened worldwide.

El Salvador is the Spear Head

Regarding pro-bitcoin regulations in Latin America, the first nation that comes to the fore is El Salvador.

El Salvador, a nation apart from the world economic panorama, has taken a step forward to become a benchmark in this regard. In 2021, El Salvador became the first country in the entire globe to accept bitcoin as legal tender.

As a result of this initiative of the Salvadoran president, Nayib Bukele, the institutions started to include bitcoin in the population’s daily life. One of those ways was with the creation of a bitcoin wallet named Chivo Wallet.

The Salvadoran administration decided to convert part of its national reserve to bitcoin. At the moment, the country has 2,301 bitcoins, according to the monitoring done by the @SalvadorTracker account.

Another plan, although it got delayed due to the current situation of the price of BTC, is the issuance of a state bond of USD 1,000 million. Of these funds, 50% would get implemented to purchase BTC, while the other 50% would focus on covering the energy infrastructure and Bitcoin mining in Bitcoin City.

These facts leave El Salvador at the top of the list of nations with economic policies closely connected to Bitcoin. However, in recent years other regions have joined, with regulations quite far removed from Salvadoran law.

Venezuela: One of the Countries with the Most Prominent Openness to Bitcoin

Until now, the Venezuelan government has generated a series of regulatory procedures to control the whole crypto-active space in the nation. The measures involve mining and the formation of exchange houses tied to digital assets.

The National Superintendency of Cryptoactives (Sunacrip) got created to closely follow the activities related to digital currencies in the country.

Some consider that the entity got created to control crypto operations instead of being a tool to encourage activities related to digital assets in the sector. According to specialists, the regulation and legal framework for Bitcoin mining in Venezuela are one of the clearest and most advanced in the region.

By: Jenson Nuñez

The Price of Bitcoin Will go through a Negative Spiral if Miners Keep Using BTC

Jenson Nunez
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The Price of Bitcoin Will go through a Negative Spiral if Miners Keep Using BTC

The rate of return per hash rate is at its lowest point this year. It costs between USD 18,000 and USD 20,000 to generate just one bitcoin (BTC).

Bitcoin mining is not going through its best moment regarding profitability. The production cost of just one BTC is between USD 18,000 and USD 20,000 for small miners, while its market price dances around USD 21,000. This low profitability makes miners sell their BTC to cover their operating costs, and they would keep doing so if their returns wouldn’t evolve.

Research by Nikolaos Panigirtzoglou, an analyst at financial firm JP Morgan, highlights that publicly traded mining entities revealed massive sales between May and June of the BTC they held in hodl. This guild represents 20% of the whole current hash rate of Bitcoin.

According to Nikolaos, these BTC sales in previous months could harm the price of bitcoin, and there is a risk that this pressure may continue.

Bitcoin mining is facing its worst moment in profitability so far this year. The hash price, or cost for each tera hash would be USD 0.07, a minimum figure this year.

Even though this situation paints a desolate panorama, the most prominent Bitcoin mining farms significantly minimized their profitability. This reduction takes effect thanks to new equipment, which modulates the production cost to levels registered at USD 15,000, reaching even over eight thousand dollars, depending on the nature of the mining activities and the cost of energy that the farm uses.

The Sale of Bitcoins Would Make the Price Crumble

The BTC sell-off can cause a phenomenon usually called a death spiral or negative spiral. In this scenario, the holders start selling their digital assets to avoid getting harmed by the price drop. That, in turn, causes the price to keep crumbling down to lower levels.

If bitcoin were to suffer due to this situation, miners could be the main culprit, as miners, in parallel with mining pools, are historically vast hodlers of BTC.

It is worth noting that while bitcoin’s price may go into a kind of negative spiral, its technological fundamentals remain undamaged. It is still decentralized digital money without third parties. This situation makes it extremely unlikely that the price will experience a decline, as some of its detractors predict.

By: Jenson Nuñez

Cryptocurrencies Jump into Sport: A Story of Convenience and Distrust

Audy Castañeda
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Cryptocurrencies Jump into Sport: A Story of Convenience and Distrust

Big digital currency platforms are investing heavily in sponsorships, but their landing has sparked some controversy.

Cryptocurrency firms, which are investing aggressively in sports with the most followers, have generated a great deal of controversy.

The American platform for buying and selling cryptocurrencies Coinbase paid almost 14 million dollars for a minute of space in the last Super Bowl. And four other companies in the sector were advertised, something that had never happened before.

There are many examples of crypto asset companies trying to associate their image with sports. The old Staples Center where the Los Angeles Lakers play will be the Crypto.com Arena for at least 20 years in exchange for $700 million. Renaming the Miami Heat court was cheaper. For 135 million it went from American Airlines Arena to be called FTX Arena for the next 19 years.

The names of the pavilions are well paid, but the business goes further. In football, since last year the Inter Milan shirt has carried a message from Socios.com, which is landing in many other clubs. And Crypto.com will sponsor the World Cup in Qatar. In the engine it is similar: rare is the F1 team that does not count among its sponsors a platform such as Crypto.com, Socios.com, Binance, FTX, or Fantom.

The Wave Has Arrived in Spain

The Austrian Bitpanda sponsored this year’s Mutua Madrid Tennis Open and the 2021 Davis Cup. Several Primera teams have reached agreements with Chiliz, the owner of Socios.com, who also signed with UEFA and LaLiga. And Baskonia basketball has Bitci as its main sponsor, a Turkish platform that pays two million euros to name the team and appear on the jersey for one season.

The breach of their contracts is generating distrust towards Bitci. Espanyol has announced legal action because it owes him money. And Cádiz, Celta, and Alavés could follow in their footsteps. From the cadista team, of which Bitci is the main sponsor, they confirm that the firm owes them part of what was promised for this season and that it alleges problems due to the restrictions of the Turkish authorities on cryptocurrencies.

The Andalusian team signed for three seasons, and avoids revealing how much it receives. Its president, Manuel Vizcaíno, explained the problems in this way: “We chose Bitci because it was the one with the most credibility and it is regular. Bitci paid a part but has not paid all. Some Bitci sponsors have already given the fright: the McLaren F1 team, Sporting de Portugal, and the Italian Spezia have broken their contracts due to non-payments.

These companies are not only looking for sports clubs and organizations. Selecting ambassadors that the general public trusts is a way to gain respectability and counter negative messages that associate them with fraud, money laundering, and speculation. For this reason, the Binance platform hired Andrés Iniesta to publish a tweet where he said that he had chosen Binance to start in the world. The potential audience was more than 25 million followers, including young people with less financial culture.

It has not been disclosed how much Iniesta charged for the tweet, but it cost him a reprimand from the CNMV, which reminded him that they carry “relevant risks” because they are unregulated products. The body is increasingly vigilant: since January it has required companies that encourage investment to request authorization and include a message warning of the risks.

It is worth noting that clubs and championships associated with cryptocurrencies are risking their reputations. What would happen if the platform they wear on their t-shirt collapses and wipes out the savings of thousands of small investors? The fall of Luna (Terra), which signed a sponsorship agreement with the Washington Nationals -part of the MLB, the main US baseball league- only three months before his bankruptcy, shows that this is not a far-fetched hypothesis.

By Audy Castaneda

What is StrongBlock (STRONG) and How Does it Work?

Audy Castañeda
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What is StrongBlock (STRONG) and How Does it Work?

Strongblock creates platforms and protocols with the intention of revolutionizing the way Blockchain networks compensate the nodes that protect and sustain them.

The digital financial environment continues to develop almost every second, and among these technological advances, a new project called StrongBlock has popularized the node-as-a-service (NaaS) concept on the Blockchain. NaaS is an alternative to running entire Blockchain nodes on your own; provides infrastructure for developers and tools to configure and manage Blockchain nodes.

Connected Blockchain nodes forward, transmit, and store decentralized Blockchain data. A node, also known as a Full Node, is a device that stores the entire transaction history of the Blockchain.

The StrongBlock team includes CEO David Moss and CTO Brian Abramson, who are enterprise software and Blockchain veterans. Corey Lederer, Chief Product Officer, is also part of the StrongBlock founding team and has extensive experience managing technology products.

How StrongBlock Works

The StrongBlock protocol is designed to deliver NUBI continuously. NUBI rewards are currently paid out in STRONG, and in the future, the company will pay them out as NFT. The protocol is then governed by those who have obtained STRONG in this way. Potential reward shortfalls may be rectified by the community in a variety of ways as the protocol grows.

Rewards are measured based on continuous contributions per node, burning STRONG for NFTs, renewal rates, NUBI drawdown, and creating different NUBI classes. Additionally, there are two methods of using nodes within the StrongBlock protocol. Bringing your own Node (BYoN) offers additional flexibility and the ability to further customize your node, while StrongBlock NaaS is faster and easier to set up.

Both approaches offer the same basic NUBI incentives, but future additions may give BYoN nodes more opportunities than NaaS nodes. Also, the monthly fee for NaaS is USD 14.95 (paid in ETH), while it varies for BYoN.

How to Launch a Blockchain Node Using StrongBlock

To launch a Blockchain node using StrongBlock, make sure you have a digital wallet. StrongBlock’s NaaS platform is compatible with MetaMask and does not support multisig wallets.

To cover the gas fees of the transaction, you will need to buy some ETH. Connect your wallet to your preferred crypto exchange and purchase 10 STRNGR tokens. MetaMask can be downloaded as a browser extension from the MetaMask website. Customers can choose Chrome, Brave, or Firefox browsers.

Check gas rates by connecting your 10 STRNGR wallet to the app.strongblock.com website. The Etherscan gas tracker can be used to check gas rates, which vary based on the crypto economy.

Is StrongBlock a Good Investment?

For Blockchain lovers, StrongBlock may seem like a promising project to launch Ethereum nodes and earn passive income. However, considering the sky-high gas fees and the volatility of the cryptocurrency market, those interested in investing should always do some research before putting money into any project.

That said, if financial goals, organization vision, and return on investment are aligned, then investors can become active participants in the project and be rewarded with STRONG tokens. However, it is important not to forget the risk exposure that one is willing to take.

The platform intends to support other protocols such as the Ethereum consensus layer update (previously ETH 2.0) soon. It also plans to introduce features such as NFT gamification and a marketplace, which can encourage Blockchain enthusiasts to participate in the StrongBlock-led Blockchain revolution.

By Audy Castaneda

Bitcoin Could Still See a “Wild” Weekend as BTC Price Touches the Key $22,000 Zone

Audy Castañeda
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Bitcoin Could Still See a “Wild” Weekend as BTC Price Touches the Key $22,000 Zone

Bitcoin bulls still have a battle on their hands in low-volume trading weekend, analysis warns, as altcoins retain multi-week record gains.

Bitcoin (BTC) focused on $21,000 over the weekend amid warnings that volatility could continue to consume the market ahead of Monday.

Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair rallied broadly in its recent trading range after US stocks finished the week strong.

As market commentator Holger Zschaepitz noted, the S&P 500 sealed its second-best week of 2022, signaling modest easing in risk assets.

On Twitter Zschäpitz stated that, “in case you missed it: S&P 500 has gained >6% in 2nd-best week of 2022 as disinflationary forces gather steam & #Fed tightening expectations recede. Investors now see the key interest rate at only 3.4% at the end of 2022, a full 35bps lower than at the start of the week.”

The S&P 500 Records the Second Best Week of 2022

Bitcoin was on track to post slight gains on its weekly close, the first weekly green candle — albeit a small one — since May.

Before then, however, anything could happen, according to on-chain analysis resource Material Indicators (MI).

Referencing the recent weekend price action, MI advised Twitter followers not to be complacent in the absence of midweek volume.

“If BTC is able to break above the 200 WMA, there is room to run,” part of one message read.

“Weekends have been wild so buckle up. A retest of the lows can come as quickly as a breakout to $24,000.”

An accompanying chart of order book data from Binance, the largest global exchange, offered a glimpse into traders’ buying and selling plans. Below the spot price, there was little support on a volume basis up to $19,000, while conversely, strong resistance was found just north of $22,000.

That level marked the key 200-week moving average (WMA) for the BTC/USD pair, needing to be claimed by bears to change the trend, multiple sources believe.

Altcoins Prepare for their First Green Week since March

Altcoins were also quiet on the day as they set for an impressive week of gains against the gloomy macro market backdrop.

Among the top ten cryptocurrencies by market capitalization, several tokens were up around 30% from the previous seven days. Among them was Ether (ETH), which was up 28%.

On a Twit, MI noted that the ETH/USD pair had also retested the 200-day WMA, but problems could still arise. “ETH with a legit retest of the 200 WMA on volume of the latest Trend Precognition signal. Want to see next week’s candle w/ a clean open and close above it without another sweep of the lows to validate. Concerned the 21 WMA will cross the 100 WMA and trigger another dump.”

For Cointelegraph contributor Michaël van de Poppe, there are still reasons to enter the cryptocurrency markets now. As he told his followers on Twitter, “From an investment point of view (all things ceteris paribus), it’s a great time to look at the altcoins you want to own.”

“In 2021, everyone dreamed of buying them at such low prices. Now the possibilities are there and people are hesitant to make the decision. Typical,” he added.

On a weekly basis, the altcoin market capitalization rose $37 billion for the week, set for its first green candle since March.

By Audy Castaneda

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